The Volta River Authority (VRA) has formally asked the Public Utilities Regulatory Commission (PURC) to raise its electricity tariff from 45.0892 to 71.8862 pesewas per kilowatt-hour, citing rising operational costs and the need to sustain reliable power generation.
The authority said the proposed increase is critical to fully recover the cost of electricity supplied to distribution companies.
VRA stressed that it has long provided power to the national electricity network without full compensation.
Speaking at a public hearing, Senior Economic Analyst Evans Somuah Mensah explained that the authority is seeking annual compensation of $30.49 million for the Akosombo hydroelectric plant, with a smaller amount for the Kpone Thermal plant, to cover its costs. He said:
“Over the years, VRA has not been compensated for doing this work to assist the national connectivity system. We are saying that on an annual basis, VRA should be given compensation $30.49 million for Akosombo power generation, and Kpone Thermal plant, a little bit of $30,000.”
Mensah also clarified that the tariff increase is meant to cover the full cost of supplying power to distribution companies, transmission expenses, and ancillary services, ensuring the authority can operate sustainably. He told the commission:
“Justification for tariff increase, we are saying that we want to recover the cost of our power supply to the distribution companies, and recover the cost of transmission and also be compensated for the provisions of ancillary services. We are requesting the PURC to increase the existing tariff of BGC from 45.0892 Ghana pesewas per kilowatt-hour to 71.8862 Ghana pesewas per kilowatt-hour.”
The VRA proposal comes as the Electricity Company of Ghana (ECG) separately seeks to raise its Distribution Service Charge (DSC1) from 19.0875 to 61.8028 pesewas per kilowatt-hour over the 2025–2029 period.
If both requests are approved, consumers across the country could face substantially higher electricity bills, raising concerns about affordability for households and businesses alike.
For residential users, the combined impact of higher generation and distribution charges could add significantly to monthly electricity costs, while businesses may see operational expenses rise, potentially affecting pricing for goods and services.
The dual proposals highlight the delicate balance between ensuring utilities’ financial sustainability and keeping electricity affordable for the public.
